Agent-Based Model of a Blockchain Enabled Peer-to-Peer Energy Market: Application for a Neighborhood Trial in Perth, Australia

Smart Cities ◽  
2020 ◽  
Vol 3 (3) ◽  
pp. 1072-1099 ◽  
Author(s):  
Jacob G. Monroe ◽  
Paula Hansen ◽  
Matthew Sorell ◽  
Emily Zechman Berglund
Keyword(s):  
Electricity Market ◽  
Energy System ◽  
Peer To Peer ◽  
Energy Market ◽  
Energy Trading ◽  
Agent Based ◽  
Trading Systems ◽  
Market Structures ◽  
Trade Offs ◽  
The Impact

The transfer of market power in electric generation from utilities to end-users spurred by the diffusion of distributed energy resources necessitates a new system of settlement in the electricity business that can better manage generation assets at the grid-edge. A new concept in facilitating distributed generation is peer-to-peer energy trading, where households exchange excess power with neighbors at a price they set themselves. However, little is known about the effects of peer-to-peer energy trading on the sociotechnical dynamics of electric power systems. Further, given the novelty of the concept, there are knowledge gaps regarding the impact of alternative electricity market structures and individual decision strategies on neighborhood exchanges and market outcomes. This study develops an empirical agent-based modeling (ABM) framework to simulate peer-to-peer electricity trades in a decentralized residential energy market. The framework is applied for a case study in Perth, Western Australia, where a blockchain-enabled energy trading platform was trialed among 18 households, which acted as prosumers or consumers. The ABM is applied for a set of alternative electricity market structures. Results assess the impact of solar generation forecasting approaches, battery energy storage, and ratio of prosumers to consumers on the dynamics of peer-to-peer energy trading systems. Designing an efficient, equitable, and sustainable future energy system hinges on the recognition of trade-offs on and across, social, technological, economic, and environmental levels. Results demonstrate that the ABM can be applied to manage emerging uncertainties by facilitating the testing and development of management strategies.

scholarly journals ANALYSIS OF THE IMPACT OF THE NEW ELECTRICITY MARKET ON LEVELING THE LOAD SCHEDULE OF THE UNIFIED ENERGY SYSTEM OF UKRAINE

World Science ◽  
2020 ◽  
Vol 1 (2(54)) ◽  
pp. 4-10
Author(s):  
Rozen Viktor ◽  
Velykyi Serhii
Keyword(s):  
Electricity Market ◽  
Electric Energy ◽  
Electricity Consumption ◽  
Energy System ◽  
Energy Market ◽  
Service Companies ◽  
Industrial Enterprises ◽  
Load Schedule ◽  
Energy Service ◽  
The Impact

The article discusses methods of regulating the power consumption regime of the schedule of the unified energy system of Ukraine, which can reduce the irregularity load schedule by using stimulating tariffs for electricity charges. A scheme of the equipment operation principle is shown, which can operate in a mode of consumer-power regulator according to the criterion of reducing electricity charges for industrial enterprises. The result of the energy reform in Ukraine led to the rejection of differentiated electricity tariffs, and the transition to market relations between enterprises that are consumers of electric energy and energy service companies that are responsible for working in the electric energy market. The objective of the article is to demonstrate the practical formation of prices for enterprises and the work of electricity suppliers, which boils down to the ongoing planning of hourly volumes for consumers of electricity and the timely purchase of the said volumes in different segments of the electricity market The aim of the article is to demonstrate the formation of prices for enterprises. The work of energy service companies, which consists in the constant planning of hourly volumes of consumers of electric energy and the timely purchase of these volumes in different segments of the electric energy market. The problem of this formation is that enterprises do not have an incentive to regulating the schedule of the unified energy system of Ukraine, as the new tariffs do not differ in terms of electricity consumption in intraday and а reducе in electricity consumption by the enterprise during peak hours. The authors propose measures that are aimed at solving this problem. The proposed measures are mainly aimed at changes in the day-ahead electricity market, which will entail changes in its other segments.

scholarly journals Optimal Simulation of Three Peer to Peer (P2P) Business Models for Individual PV Prosumers in a Local Electricity Market Using Agent-Based Modelling

Buildings ◽  
2020 ◽  
Vol 10 (8) ◽  
pp. 138 ◽  
Author(s):  
Marco Lovati ◽  
Xingxing Zhang ◽  
Pei Huang ◽  
Carl Olsmats ◽  
Laura Maturi
Keyword(s):  
Electricity Markets ◽  
Electricity Market ◽  
Business Models ◽  
Energy System ◽  
Peer To Peer ◽  
Positive Energy ◽  
Financial Flows ◽  
Agent Based ◽  
Agent Based Modelling ◽  
Self Sufficiency

Solar photovoltaic (PV) is becoming one of the most significant renewable sources for positive energy district (PED) in Sweden. The lack of innovative business models and financing mechanisms are the main constraints for PV’s deployment installed in local communities. This paper therefore proposes a peer-to-peer (P2P) business model for 48 individual building prosumers with PV installed in a Swedish community. It considers energy use behaviour, electricity/financial flows, ownerships and trading rules in a local electricity market. Different local electricity markets are designed and studied using agent-based modelling technique, with different energy demands, cost–benefit schemes and financial hypotheses for an optimal evaluation. This paper provides an early insight into a vast research space, i.e., the operation of an energy system through the constrained interaction of its constituting agents. The agents (48 households) show varying abilities in exploiting the common PV resource, as they achieve very heterogeneous self-sufficiency levels (from ca. 15% to 30%). The lack of demand side management suggests that social and lifestyle differences generate huge impacts on the ability to be self-sufficient with a shared, limited PV resource. Despite the differences in self-sufficiency, the sheer energy amount obtained from the shared PV correlates mainly with annual cumulative demand.

scholarly journals A Hybrid Energy System Workflow for Energy Portfolio Optimization

Energies ◽  
2021 ◽  
Vol 14 (15) ◽  
pp. 4392
Author(s):  
Jia Zhou ◽  
Hany Abdel-Khalik ◽  
Paul Talbot ◽  
Cristian Rabiti
Keyword(s):  
Time Series ◽  
Gaussian Process ◽  
Electricity Market ◽  
Process Model ◽  
Net Present Value ◽  
Historical Data ◽  
Energy System ◽  
Initial Guess ◽  
Reduced Order ◽  
The Impact

This manuscript develops a workflow, driven by data analytics algorithms, to support the optimization of the economic performance of an Integrated Energy System. The goal is to determine the optimum mix of capacities from a set of different energy producers (e.g., nuclear, gas, wind and solar). A stochastic-based optimizer is employed, based on Gaussian Process Modeling, which requires numerous samples for its training. Each sample represents a time series describing the demand, load, or other operational and economic profiles for various types of energy producers. These samples are synthetically generated using a reduced order modeling algorithm that reads a limited set of historical data, such as demand and load data from past years. Numerous data analysis methods are employed to construct the reduced order models, including, for example, the Auto Regressive Moving Average, Fourier series decomposition, and the peak detection algorithm. All these algorithms are designed to detrend the data and extract features that can be employed to generate synthetic time histories that preserve the statistical properties of the original limited historical data. The optimization cost function is based on an economic model that assesses the effective cost of energy based on two figures of merit: the specific cash flow stream for each energy producer and the total Net Present Value. An initial guess for the optimal capacities is obtained using the screening curve method. The results of the Gaussian Process model-based optimization are assessed using an exhaustive Monte Carlo search, with the results indicating reasonable optimization results. The workflow has been implemented inside the Idaho National Laboratory’s Risk Analysis and Virtual Environment (RAVEN) framework. The main contribution of this study addresses several challenges in the current optimization methods of the energy portfolios in IES: First, the feasibility of generating the synthetic time series of the periodic peak data; Second, the computational burden of the conventional stochastic optimization of the energy portfolio, associated with the need for repeated executions of system models; Third, the inadequacies of previous studies in terms of the comparisons of the impact of the economic parameters. The proposed workflow can provide a scientifically defendable strategy to support decision-making in the electricity market and to help energy distributors develop a better understanding of the performance of integrated energy systems.

scholarly journals Credible Peer-to-Peer Trading with Double-Layer Energy Blockchain Network in Distributed Electricity Markets

Electronics ◽  
2021 ◽  
Vol 10 (15) ◽  
pp. 1815
Author(s):  
Longze Wang ◽  
Yu Xie ◽  
Delong Zhang ◽  
Jinxin Liu ◽  
Siyu Jiang ◽  
...  
Keyword(s):  
Double Layer ◽  
Electricity Markets ◽  
Electricity Market ◽  
Peer To Peer ◽  
Malicious Nodes ◽  
Energy Trading ◽  
Contract Performance ◽  
Trading Model ◽  
Consensus Information ◽  
Available Information

Blockchain-based peer-to-peer (P2P) energy trading is one of the most viable solutions to incentivize prosumers in distributed electricity markets. However, P2P energy trading through an open-end blockchain network is not conducive to mutual credit and the privacy protection of stakeholders. Therefore, improving the credibility of P2P energy trading is an urgent problem for distributed electricity markets. In this paper, a novel double-layer energy blockchain network is proposed that stores private trading data separately from publicly available information. This blockchain network is based on optimized cross-chain interoperability technology and fully considers the special attributes of energy trading. Firstly, an optimized ring mapping encryption algorithm is designed to resist malicious nodes. Secondly, a consensus verification subgroup is built according to contract performance, consensus participation and trading enthusiasm. This subgroup verifies the consensus information through the credit-threshold digital signature. Thirdly, an energy trading model is embedded in the blockchain network, featuring dynamic bidding and credit incentives. Finally, the Erenhot distributed electricity market in China is utilized for example analysis, which demonstrates the proposed method could improve the credibility of P2P trading and realize effective supervision.

Agent-Based Modeling of Peer-to-Peer Energy Trading in a Smart Grid Environment

2021 ◽  
Author(s):  
Diogo V. Guimaraes ◽  
Matthew B Gough ◽  
Sergio F. Santos ◽  
Ines F.G. Reis ◽  
Juan M. Home-Ortiz ◽  
...  
Keyword(s):  
Smart Grid ◽  
Peer To Peer ◽  
Agent Based Modeling ◽  
Grid Environment ◽  
Energy Trading ◽  
Agent Based

scholarly journals Demonstration of Blockchain Based Peer to Peer Energy Trading System with Real-Life Used PHEV and HEMS Charge Control

Energies ◽  
2021 ◽  
Vol 14 (22) ◽  
pp. 7484
Author(s):  
Yuki Matsuda ◽  
Yuto Yamazaki ◽  
Hiromu Oki ◽  
Yasuhiro Takeda ◽  
Daishi Sagawa ◽  
...  
Keyword(s):  
Supply And Demand ◽  
Real Life ◽  
Energy System ◽  
Energy Markets ◽  
Peer To Peer ◽  
Renewable Energy Resources ◽  
Trading System ◽  
Energy Trading ◽  
Demonstration Experiment ◽  
Home Energy Management

To further implement decentralized renewable energy resources, blockchain based peer-to-peer (P2P) energy trading is gaining attention and its architecture has been proposed with virtual demonstrations. In this paper, to further socially implement this concept, a blockchain based peer to peer energy trading system which could coordinate with energy control hardware was constructed, and a demonstration experiment was conducted. Previous work focused on virtually matching energy supply and demand via blockchain P2P energy markets, and our work pushes this forward by demonstrating the possibility of actual energy flow control. In this demonstration, Plug-in Hybrid Electrical Vehicles(PHEVs) and Home Energy Management Systems(HEMS) actually used in daily life were controlled in coordination with the blockchain system. In construction, the need of a multi-tagged continuous market was found and proposed. In the demonstration experiment, the proposed blockchain market and hardware control interface was proven capable of securing and stably transmitting energy within the P2P energy system. Also, by the implementation of multi-tagged energy markets, the number of transactions required to secure the required amount of electricity was reduced.

scholarly journals Anticipating Distributional Impacts of Peer-to-Peer Energy Trading: Inference From a Realist Review of Evidence on Airbnb

2020 ◽  
Author(s):  
Michael J. Fell
Keyword(s):  
Realist Review ◽  
Energy System ◽  
Peer To Peer ◽  
Individual Choice ◽  
Low Carbon ◽  
Energy Trading ◽  
Race And Gender ◽  
Highly Educated ◽  
Accommodation Sector ◽  
Distributional Impacts

Peer-to-peer (P2P) energy trading – where energy prosumers transact directly between each other – could help enable transition to a low-carbon energy system. If it is to be supported in policy and regulation, it is important to anticipate the distributional impacts (or how it might impact segments of society differently). However, real-world evidence on P2P energy trading is currently extremely limited. To address this challenge in the short- to medium-term, this study aimed to explore what might be learned from the extensive body of research on a comparable offering in the accommodation sector: Airbnb. A realist review approach was employed to maximise transferability of findings, focused on what mechanisms are thought to lead to what distributional outcomes, in what contexts. On the basis of the review, the benefits of selling services in P2P energy trading schemes would be expected to accrue disproportionately to those living in areas with network management challenges, who are younger and more highly educated. The review also raised the prospect of discrimination on the basis of characteristics such as race and gender where there are high levels of individual choice over who to trade with. Recommendations include monitoring, incentivising diversity, anonymization, and limiting trading choices.

scholarly journals Blockchain in Energy Efficiency: Potential Applications and Benefits

Energies ◽  
2019 ◽  
Vol 12 (17) ◽  
pp. 3317 ◽  
Author(s):  
Asma Khatoon ◽  
Piyush Verma ◽  
Jo Southernwood ◽  
Beth Massey ◽  
Peter Corcoran
Keyword(s):  
Energy Efficiency ◽  
Information And Communication Technologies ◽  
Asset Management ◽  
Large Scale ◽  
Energy System ◽  
Energy Trading ◽  
Trading Systems ◽  
Energy Company ◽  
Blockchain Technology ◽  
Smart Contract

Blockchain technology is ready to disrupt nearly every industry and business model, and the energy sector is no exception. Energy businesses across the world have already started exploring the use of blockchain technology in large-scale energy trading systems, peer-to-peer energy trading, project financing, supply chain tracking, and asset management among other applications. Information and Communication Technologies (ICTs) recently started revolutionizing the energy landscape, and now blockchain technology is providing an additional opportunity to make the energy system more intelligent, efficient, transparent, and secure in the longer term. The idea of this paper is to examine more closely the use of blockchain technology for its possible application in the energy efficiency industry and to determine how it could make energy efficiency markets more secure and transparent in the longer term. This paper examines in detail the key benefits and implications of using blockchain in the energy efficiency sector through the presentation and discussion of two case studies as possible blockchain applications—(i) the UK Energy Company Obligation scheme and (ii) the Italian White Certificate Scheme. We have presented how the key issues around trading energy efficiency savings—correctly estimating the savings, data transparency among stakeholders, and inefficient administrative processes—can be solved through the application of a blockchain-based smart contract system. Finally, this paper presents an implementation of a smart contract for trading of energy-saving certificates achieved via execution of smart contract transactions on the Ethereum blockchain.

scholarly journals Economic and Climatic Impacts of Different Peer-to-Peer Game Theoretic–Based Energy Trading Systems

IEEE Access ◽  
2020 ◽  
Vol 8 ◽  
pp. 195632-195644
Author(s):  
Usman Mussadiq ◽  
Anzar Mahmood ◽  
Saeed Ahmed ◽  
Sohail Razzaq ◽  
Insoo Koo
Keyword(s):  
Peer To Peer ◽  
Energy Trading ◽  
Trading Systems ◽  
Game Theoretic ◽  
Climatic Impacts

scholarly journals A Novel Peer-To-Peer Energy Sharing Business Model for the Portuguese Energy Market

Energies ◽  
2019 ◽  
Vol 13 (1) ◽  
pp. 125 ◽  
Author(s):  
Lurian Pires Klein ◽  
Aleksandra Krivoglazova ◽  
Luisa Matos ◽  
Jorge Landeck ◽  
Manuel de Azevedo
Keyword(s):  
Business Model ◽  
Business Models ◽  
Low Voltage ◽  
Peer To Peer ◽  
Energy Market ◽  
Voltage Transformer ◽  
Market Structures ◽  
Regulatory Frameworks ◽  
Real Market ◽  
Energy Sharing

The co-evolution of techno-economic, societal, environmental and political-institutional systems towards sustainable energy transitions is largely influencing the disruptive reconfiguration of the energy sector across the globe. At the heart of this disruption is the peer-to-peer energy sharing concept. Nonetheless, peer-to-peer energy sharing business models are yet very little put into practice due to the rigid energy market structures and lagging regulatory frameworks across the globe. In view of this, this paper presents a novel peer-to-peer energy sharing business model developed specifically for the context of the Portuguese energy market, which was successfully trialed in three pilot projects in Portugal under real market conditions. All things considered, the novelty of this paper lies on an innovative approach for the collaborative use of the surplus electricity generation from photovoltaic systems between end-users under the same low voltage/medium voltage transformer substation, which resulted in direct financial benefits to them. While absent deregulation obstructs the implementation of effective peer-to-peer energy sharing markets in Portugal, such demonstration projects are essential to challenge restrictive regulatory frameworks that do not keep pace with techno-economic and societal innovations, thus helping to build the emerging consumer-centric energy regime and disrupt the old one.

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